Fannie Mae embraces crypto-backed mortgages amid declining profits in 2025
Fannie Mae, the U.S. government-backed mortgage giant, has begun accepting crypto-backed mortgage structures. The move marks a major step in blending digital assets with traditional home financing. Meanwhile, the company's financial results for 2025 show a decline in profits compared to the previous year. Fannie Mae, officially known as the Federal National Mortgage Association (FNMA), was established in 1938. It remains under federal conservatorship and holds a market value of roughly $5.6 billion.
The new crypto-backed mortgage system involves two separate loans. Borrowers must lock their pledged cryptocurrency until the mortgage is fully repaid. FNMA has teamed up with Better Home & Finance and Coinbase Global (COIN) to roll out this initiative. Financially, the company reported a net income of $3.5 billion in Q4 2025, down from $4.1 billion in the same period of 2024. For the entire year, profits reached $14.4 billion—a 15% drop from 2024. In 2026, FNMA's stock performance has struggled, falling by 34.76% year-to-date. On March 26, shares dropped sharply by 8.2%, closing at $4.94.
The introduction of crypto-backed mortgages reflects broader acceptance of digital assets in mainstream finance. Despite this innovation, Fannie Mae's stock has faced significant declines in early 2026. The company's latest earnings also highlight a downward trend in profitability over the past year.
